Insurance on-site inspections
Due to Solvency II preparations, BaFin has been unable to increase the number of on-site
inspections of insurance companies. While this has been compensated for to some extent by
other activities, such as meetings with board members and short visits to institutions, BaFin is
encouraged to follow through with its plans to double the number of on-site inspections.
The Solvency II preparations have also resulted in most on-site inspections focusing primarily on
the readiness of insurance companies’ internal models, which include a strong focus on risk
management requirements. Although understandable, this has meant that various other key
risk areas of insurance companies – such as those related to IT, new investments, products
and activities – have received relatively less attention. Going forward, BaFin should identify
the key risk areas of insurers based on its new risk classification approach and use them to
determine its on-site inspection programme.